H.R. 1578 (113th): To amend section 1101 of the Patient Protection and Affordable Care Act to provide additional funds to permit additional individuals to enroll under the preexisting condition insurance program and expand eligibility, to be funded through a temporary increase in the cigarette tax, and for other purposes.

Mr. Pallone (for
himself, Mr. Waxman,
Mr. Tonko,
Ms. Schakowsky,
Mr. Gene Green of Texas,
Mr. Rush, Ms. Matsui, Mrs.
Capps, and Mrs.
Christensen) introduced the following bill; which was referred to
the Committee on Energy and
Commerce, and in addition to the Committee on
Ways and Means, for a
period to be subsequently determined by the Speaker, in each case for
consideration of such provisions as fall within the jurisdiction of the
committee concerned

A BILL

To amend section 1101 of the Patient Protection and
Affordable Care Act to provide additional funds to permit additional
individuals to enroll under the preexisting condition insurance program and
expand eligibility, to be funded through a temporary increase in the cigarette
tax, and for other purposes.

1.

Extension of funding for
reopening enrollment under the preexisting condition insurance program

(a)

In
general

Subsection (g)(1) of
section 1101 of the Patient Protection and Affordable Care Act (42 U.S.C.
18001) is amended by striking Such funds and inserting the
following: In addition to the funds appropriated under the previous
sentence, there is appropriated to the Secretary, out of any moneys in the
Treasury not otherwise appropriated, $2,800,000,000 to pay claims (and
administrative costs) described in such sentence. Funds appropriated under this
paragraph.

(b)

Reopening
program enrollment

The
Secretary of Health and Human Services shall resume taking applications for
participation under the temporary high-risk health insurance program under such
section 1101, but only to the extent consistent with the limitation imposed
under subsection (g)(4) of such section.

(c)

Construction

Nothing
in this section shall be construed as changing the application of subsection
(g)(3) of such section (relating to termination of authority).

The amendments made by subsection (a) shall apply with
respect to individuals applying for coverage through the high risk insurance
pool program on or after the date of the enactment of this Act.

3.

Increase in rate
of excise tax on cigarettes

(a)

In
general

Section 5701(b)(1) of
the Internal Revenue Code of 1986 is amended by inserting ($52.33 per
thousand in the case of cigarettes removed after December 31, 2013 and before
January 1, 2024) after $50.33 per thousand.

(b)

Floor Stocks
Taxes

(1)

Imposition of
tax

On cigarettes described in section 5701(b)(1) of the Internal
Revenue Code of 1986 manufactured in or imported into the United States which
are removed before January 1, 2014, and held on such date for sale by any
person, there is hereby imposed a tax in an amount equal to the excess
of—

(A)

the tax which
would be imposed under section 5701 of such Code on the article if the article
had been removed on such date, over

(B)

the prior tax (if
any) imposed under section 5701 of such Code on such article.

(2)

Credit against
tax

Each person shall be allowed as a credit against the taxes
imposed by paragraph (1) an amount equal to $500. Such credit shall not exceed
the amount of taxes imposed by paragraph (1) on January 1, 2014, for which such
person is liable.

(3)

Liability for
tax and method of payment

(A)

Liability for
tax

A person holding cigarettes referred to in paragraph (1) on
January 1, 2014, to which any tax imposed by paragraph (1) applies shall be
liable for such tax.

(B)

Method of
payment

The tax imposed by paragraph (1) shall be paid in such
manner as the Secretary shall prescribe by regulations.

(C)

Time for
payment

The tax imposed by paragraph (1) shall be paid on or
before May 1, 2014.

(4)

Articles in
foreign trade zones

Notwithstanding the Act of June 18, 1934
(commonly known as the Foreign Trade Zone Act, 48 Stat. 998, 19 U.S.C. 81a et
seq.) or any other provision of law, any article which is located in a foreign
trade zone on July 1, 2013, shall be subject to the tax imposed by paragraph
(1) if—

(A)

internal revenue
taxes have been determined, or customs duties liquidated, with respect to such
article before such date pursuant to a request made under the 1st proviso of
section 3(a) of such Act, or

(B)

such article is
held on such date under the supervision of an officer of the United States
Customs and Border Protection of the Department of Homeland Security pursuant
to the 2d proviso of such section 3(a).

(5)

Definitions

For
purposes of this subsection—

(A)

In
general

Any term used in this subsection which is also used in
section 5702 of the Internal Revenue Code of 1986 shall have the same meaning
as such term has in such section.

(B)

Secretary

The
term Secretary means the Secretary of the Treasury or the
Secretary’s delegate.

(6)

Controlled
groups

Rules similar to the rules of section 5061(e)(3) of such
Code shall apply for purposes of this subsection.

(7)

Other laws
applicable

All provisions of law, including penalties, applicable
with respect to the taxes imposed by section 5701 of such Code shall, insofar
as applicable and not inconsistent with the provisions of this subsection,
apply to the floor stocks taxes imposed by paragraph (1), to the same extent as
if such taxes were imposed by such section 5701. The Secretary may treat any
person who bore the ultimate burden of the tax imposed by paragraph (1) as the
person to whom a credit or refund under such provisions may be allowed or
made.

(c)

Effective
Date

The amendments made by this section shall apply to articles
removed (as defined in section 5702(j) of the Internal Revenue Code of 1986)
after December 31, 2013.